Business Report :
Bangladesh Bank on Thursday removed NCC Bank Chairman M Abul Bashar and Director Md Abdul Awal after they were declared loan defaulters at Bank Asia.
The central bank issued letters to NCC Bank’s managing director on the same day regarding the removal. Bashar is the son of Awal.
In separate letters, Bangladesh Bank stated that the positions of Bashar and Awal at NCC Bank became vacant as of October 12, 2024, after they failed to repay loans to Bank Asia within the stipulated time, in accordance with Section 17 of the Bank Company Act, 1991.
The letters also noted that Bank Asia could recover the defaulted loans under Section 17(5) of the Bank Company Act, 1991.
Both Bashar and Awal have defaulted on loans from several banks and non-bank financial institutions.
Recently, some banks filed complaints with the central bank against them, said an official.
According to the Bank Company Act, loan defaulters cannot serve as directors of any bank.